As in we paid for a tear-off but they layered it on.

@Ben Bradmon Jr Since you bought the property, you can depreciate only to the extent of what you paid for the depreciable property.

The structure being contemplated:-- The cash they each put in gets paid back with interest/return.

So far I have 1099, Advertising & Marketing, bank charges & Fees, Capital Expenses (for remodels) Car & Truck, Contractor, depreciation, donations, Employee benefits, insurance, interest paid, inventory assets, job supplies, legal &professional services, loans/points, meals & entertainment, office expenses, Rent & lease, repairs & maintenance, salaries & wages, taxes & licenses travel, utilities.

Get Paid!

But you persevered and it paid off.

From what my cpa has told me and what I remember I believe under the new law you can expense any amount over 2500 in the year it was paid.

My counter part who started out all fired up and seemed to be doing okay, over paid I think for certain jobs, like $45hr to reframe, he and his buddy painted (not complete) for $15hr, had the whole house sided instead of using what was there and the crew took us all summer.

Account Closed, sorry to hear that (it reads like)  your home is worth less today than you paid in 2001?

While rehabbing that property (which will cash flow approximately $300 a month when all done) I managed to get another SFR under contract using owner financing which I will be closing on this month... completely rehabbed with a tenant in place and negotiated down to 30% below market value with seller financing at 6% for 3 years...now the awesome part of this deal is that although the property won't cash flow until it is paid off.... in 3 years I will own a $75K property free and clear that will cash flow $600 a month....second unit...check....